Soy Market Tumbling through Tuesday

Soybean prices and soymeal futures are each down by more than a percent for Tuesday’s midday. Beans are trading 14 to 19 cents in the red and are within 2 cents of the daily lows. Soymeal prices are at their lows for the day with $7.10 to $8/ton losses. Soybean Oil futures are also trading in the red, though losses are held to within 0.4% so far for midday. 

USDA announced another large export sale, as private exporters sold 132k MT of soybeans to unknown. 

Weekly Inspections data showed 1.411 MMT (51.87 mbu) of soybeans were exported during the week that ended 12/14. That was up from 1 MMT last week, but a 28% decrease from the same week last year and 17% below the 5-yr average for the given week. USDA updated the season’s total to 21.17 MMT (777.8 mbu), compared to 25.5 MMT at the same time last year. 

The Panama Canal Authority announced they will raise the daily Panamax allotment to 24 vessels beginning mid-Jan, from the 18/day previously announced. Lack of rain in the Central American country began impacting daily traffic in August, when a 32/day cap was introduced. 

Argentina is planning on raising the export tax on soy products to 33% from 31%, matching the existing tax on soybeans. This is an effort to generate foreign exchange for the government following the peso devaluation and makes exporting whole beans relatively more attractive than before. 

Jan 24 Soybeans  are at $13.12 1/2, down 14 1/2 cents,

Nearby Cash   is at $12.59 5/8, down 14 1/2 cents,

Mar 24 Soybeans  are at $13.22 1/2, down 17 1/2 cents,

May 24 Soybeans  are at $13.33 1/2, down 17 1/4 cents,